Closing your business? See what could block your BIR clearance.
Many owners only discover open BIR cases the day they try to close. This free 2-minute check tells you whether anything you know about points to a blocker — and what the next step is.
Based on RMC No. 47-2026 (simplified closure) and RR No. 4-2026 (one-time micro-taxpayer abatement). General information, not legal advice for your specific case.
The closure check is being finalized
We're completing verification of this tool's rules. Meanwhile the free eligibility checker below covers the most important question — whether the ₱5,000 abatement can clear your open cases.
Run the free eligibility checkWhat changed: closing got simpler in 2026
RMC No. 47-2026 (May 19, 2026) streamlined business closure. The documentary list is now short: BIR Form 1905, an inventory of unused invoices and accounting forms, and your original Certificate of Registration (VAT-registered businesses also submit an ending inventory). Penalties for non-filing stop accruing once complete closure requirements are submitted, and micro taxpayers WITHOUT open cases or unpaid liabilities can receive tax clearance within 3 working days of complete submission.
The catch: open cases block your clearance
That 3-day path assumes a clean record. If you stopped filing returns, never answered a BIR letter, or have old assessments, those show up as open cases when you file for closure — and they must be settled before clearance is issued.
The ₱5,000 way to clear them — until 31 December 2026
RR No. 4-2026 gives micro taxpayers (gross sales under ₱3M) a one-time abatement: for a ₱5,000 fee per taxable year, covered delinquencies, assessments, and stop-filer cases existing as of 31 December 2025 — up to ₱80,000 per year counted as basic tax plus compromise penalties (surcharge and interest wiped on top, RMC 84-2026) — can be cleared. Applications are accepted only until 31 December 2026. For a closure that's blocked by open cases, this is usually the cheapest exit.
Common questions
Can I close my business if I have open BIR cases?
You can file for closure, but tax clearance is issued only after open cases and unpaid liabilities are settled. For micro taxpayers, the RR 4-2026 abatement (until 31 December 2026) is often the cheapest way to clear covered cases — ₱5,000 per taxable year for cases existing as of 31 December 2025, up to ₱80,000 per year counted as basic tax plus compromise penalties (surcharge and interest don't count, RMC 84-2026 Q12/Q18). Once approved, your Certificate of Availment itself supports the closure application (RMC 84-2026 Q27) — though closure is never automatic; you still file for it under RMC 47-2026.
How long does BIR closure take under RMC 47-2026?
For micro taxpayers with complete documents and NO open cases or unpaid liabilities, RMC 47-2026 provides for tax clearance within 3 working days of complete submission. With open cases, the clock effectively starts after they're settled.
Do penalties keep growing while I process the closure?
Under RMC 47-2026, penalties for non-filing no longer accrue once the complete documentary requirements for closure are submitted. Obligations that existed before filing can remain and may still need settlement.
What documents do I need to close with BIR?
Per RMC 47-2026: BIR Form 1905 (2 original copies), an inventory of unused invoices and unutilized accounting forms (surrendered with the forms themselves), and your original Certificate of Registration and BIR notices. VAT-registered taxpayers also submit an ending inventory of goods, supplies, and capital goods.